The International Reinsurance business of Prudential Retirement has completed its first reinsurance deal with an unnamed UK pension scheme, with UK-regulated insurer Zurich Assurance serving as an intermediary.

Closed in March 2021, the deal sees transfer of longevity risk associated with $8.4bn (£6bn) of pensioner liabilities.

This is Prudential’s third largest UK longevity risk transfer deal so far.

It is the first transaction involving a limited recourse or pass-through structure entered into by Prudential Retirement, a business unit of Prudential Financial.

The latest move comes after the International Reinsurance business was re-branded at the end of last year.

Prudential International Reinsurance business transactions head Rohit Mathur said: “At Prudential, we see the use of a third-party onshore U.K.-regulated insurer as limited recourse intermediary as the logical next step in the de-risking solutions we can offer clients in our evolving business model.”

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Willkie Farr & Gallagher and Clifford Chance served as advisors for PFI. Willis Towers Watson (WTW), CMS and Eversheds Sutherland acted as advisors to the trustee and joint working group, while Zurich was advised by Pinsent Masons and Kramer Levin Naftalis & Frankel. The scheme’s sponsor was advised by LCP.

Zurich Assurance longevity risk transfer head Greg Wenzerul said: “There are many ongoing benefits for a U.K. Trustee in using a regulated U.K. insurance company for longevity risk insurance in this capacity, including cost certainty for the life of the transaction.

“All indications are that the U.K. pension risk transfer buy-in and buy-out market activity will remain strong this year.”